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EUR/USD still struggling under a cloud of political uncertainty

The latest US economic data might have been somewhat disappointing and perhaps in a different world that might have helped the EUR/USD to rebound more than it currently has. The simple reason for this is all about the upcoming French elections and the political uncertainty that has delivered. However, it is not just in France where such uncertainty reigns right now, as a marked shift to the right across many other leading nations is undermining the attractiveness of the region as an investment destination. This is what has taken the heat out of the record gains in the likes of the DAX and the CAC and clearly caused a re-think amongst international investors and that in turn has led more hot money flow back to US stocks despite the overcooked nature of the markets there. This inverse capital flow is hampering gains for the EUR/USD. Granted the EUR/USD is off its recent lows (1.0668), but in real terms, as you can see, not by very much at this stage. The EUR/USD range today has obviously been curtailed due to the US holiday, as if it needed another excuse (1.0725-1.0742). It is currently trading at 1.0733

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